Tesla Model 3 production issues make customers jittery

Tesla, the manufacturer of electric vehicles, has laid off hundreds of employees after the disruption of the production of the Model 3, a auto significant to his rise in power, said on Monday AFP a source close to the folder. The company also noted that the firings involved mostly non-manufacturing positions and said some employees were given bonuses and promotions after this year's review. "Tesla is continuing to grow and hire new employees around the world", the American firm was quoted as saying.

More than 450,000 people are on the Model 3 waiting list and Tesla is under pressure to deliver having fallen behind its own production targets and making just 260 cars last quarter.

Tesla's chief executive officer Elon Musk has ambitious plans to increase production five-fold raising the production to half-million electric vehicles in 2018 in order to meet Tesla's market value of $59 billion.

According to a report in The Wall Street Journal, the #Tesla Model 3 production began in July.

Like all companies, Tesla conducts an annual performance review during which a manager and employee discuss the results that were achieved, as well as how those results were achieved, during the performance period. It was later revealed by the WSJ that Tesla's "dirty secret" for the unexpected production problem is that it was banging out parts of the Model 3 by hand.

That has Wall Street a bit anxious about the company's Model 3 production ramp, which has already encountered issues.

In a move that has enraged not only employees but also customers, electric-car maker Tesla has dismissed hundreds of employees citing sub-par performance. The change in materials from the Model S and Model X to the Model 3 meant that Tesla had to learn manufacturing processes that are new to them, according to experts.

While Tesla did not provide statistics, it suggested that its attrition rate this year is roughly similar to last year's rate. Tesla has a hearing before the National Labor Relations Board in November related to workers being harassed for distributing union literature.

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